When considering the best crypto exchange for you, it’s important to understand what matters to you. Some traders are more active and need in-depth tools. In contrast, some investors prefer simplicity and low fees. Plus, you can also consider exchange features like staking and crypto rewards.
Here are some of the most important factors to consider when choosing your cryptocurrency exchange.
Pretty much every exchange lets you trade popular cryptos like Bitcoin and Ethereum. But if you want more altcoins, exchanges like Coinbase, Crypto.com, and 1inch are some of your better options.
Trading fees are one area where crypto exchanges differ greatly. And, oftentimes, the more beginner-friendly exchanges charge higher fees for their convenience.
For occasional traders, paying slightly higher trading fees might be worth it for simplicity. But if you actively trade, consider low-fee options like Binance.US and FTX.US.
Ease of Use
Like trading fees, crypto exchanges differ in terms of how beginner-friendly they are. Options like Coinbase or mobile trading apps like Robinhood are excellent for brand new traders. But if you want more trading tools and research, exchanges like Binance.US or Kraken are superior.
If you lose access to your crypto wallet because of a scam or unauthorized access, there’s little hope of recovering your funds. And if an exchange suffers a hack, you’re basically at the mercy of the owners to restore your funds.
The best crypto exchanges have robust insurance policies in place and a history of not being hacked. This might sound extreme, but some exchanges like Bitfinex have been hacked several times, resulting in losses for its users.
For the most peace of mind, stick with reputable exchanges like Gemini and Coinbase.
If you want to earn passive income, choose a cryptocurrency exchange that lets you stake coins for rewards. Crypto.com, Gemini, and Kraken all have lucrative staking programs you can explore. In contrast, some exchanges like FTX.US don’t support staking, and other options might pay very low rates.
How do you want to purchase your crypto?
For many investors, fiat-to-crypto trading is most common, so you need an exchange that lets you fund your account with money from your bank. Alternatively, you need an exchange that lets you buy crypto directly with your debit or credit card.
And for global investors, support for multiple currencies is another important consideration.
Cryptocurrency exchange privacy really boils down to choosing a centralized or decentralized exchange. If you don’t want a middleman, DEXs like 1inch are some of the best decentralized exchanges you can use. However, the trade-off is ease-of-use, and centralized exchanges are much more beginner-friendly.